NEW YORK (AP) — U.S. stocks rose Monday as Wall Street took President Donald Trump’s latest threat on tariffs in stride.
The S&P 500 climbed 0.7%, coming off a losing week that was bookended by worries about how potential tariffs could push up inflation and threaten the economy. The Dow Jones Industrial Average added 167 points, or 0.4%, and the Nasdaq composite rallied 1% as Nvidia and other Big Tech stocks led the way.
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Trader Peter Mancuso works on the floor of the New York Stock Exchange, Tuesday, Feb. 4, 2025. (AP Photo/Richard Drew)
Specialist Douglas Johnson works on the floor of the New York Stock Exchange, Tuesday, Feb. 4, 2025. (AP Photo/Richard Drew)
People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 10, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 10, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 10, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
The bond market also remained relatively firm, with Treasury yields making only modest moves after Trump said over the weekend that he would announce 25% tariffs on all steel and aluminum imports, as well as other import duties later in the week.
Fear around tariffs has been at the center of Wall Street’s moves recently, and experts say the market likely has more swings ahead. The price of gold, which often rises when investors are feeling nervous, climbed again Monday to top $2,930 per ounce and set another record. But Trump has shown he can be just as quick to pull back on threats, like he did with 25% tariffs he had announced on Canada and Mexico, suggesting they may be merely a negotiating chip rather than a true long-term policy.
Trump, of course, has already gone ahead with 10% tariffs on China. Those will likely affect Wall Street by cleaving winning industries from losing ones, but they won’t necessarily drag the entire market lower, according to Michael Wilson and other strategists at Morgan Stanley. A big, market-wide impact would be more likely “if we were to see sustained tariffs on a range of countries including 25% tariffs on Mexico and Canada.”
Stocks of U.S. steel and aluminum producers jumped Monday, banking on expectations tariffs could help their profits, while the overall S&P 500 index remained relatively calm.
Nucor rose 5.6%, Cleveland-Cliffs jumped 17.9% and Alcoa climbed 2.2%.
Some companies that have to buy steel in their manufacturing swung, but not so sharply. General Motors fell 1.7%, Caterpillar slipped 0.2% and Ford Motor was flat.
In the meantime, earnings reports from big U.S. companies also helped drive trading.
McDonald’s climbed 4.8% even though it reported profit and revenue for the end of 2024 that were just shy of analysts’ expectations. Investors focused instead on better-than-expected strength for restaurants outside the United States, particularly in the Middle East, Japan and other markets with licensed McDonald’s locations.
Big Tech stocks were some of the strongest forces pushing the S&P 500 higher, including gains of 2.9% for Nvidia and 4.5% for Broadcom. They had come under pressure last month after a Chinese upstart upended Wall Street’s artificial-intelligence boom by saying it had developed a large language model that could perform like the world’s best without having to use the most expensive, top-flight chips.
Despite the development by DeepSeek, big U.S. companies have since said they’re still planning to plow billions of dollars into their AI endeavors. That’s calmed worries that DeepSeek could have turned off a huge spigot of spending for the industry, at least for now.
Such gains helped offset a 7.9% drop for Incyte after the biopharmaceutical company reported weaker profit for the latest quarter than analysts expected.
All told, the S&P 500 rose 40.45 points to 6,066.44. The Dow Jones Industrial Average added 167.01 to 44,4701.41, and the Nasdaq composite jumped 190.87 to 19,714.27.
In the bond market, the yield on the 10-year Treasury held steady at 4.50%, where it was late Friday. The yield on the two-year Treasury, which more closely tracks expectations for what the Federal Reserve will do with short-term interest rates, fell to 4.27% from 4.29%.
The Fed cut its main interest rate several times through the end of last year, but traders have been sharply curtailing their expectations for more reductions in 2025, in part because of fears about potentially higher inflation from tariffs. While lower rates can give a boost to the economy and investment prices, they can also give inflation more fuel.
Fed Chair Jerome Powell will be offering testimony before Congress later this week, where he could offer more hints about what the Fed is thinking. In December, Fed officials sent financial markets sharply lower after indicating they may cut rates only twice this year. Now, some traders and economists think the Fed may not cut at all.
Reports are also coming this week on inflation, which could further drive the Fed’s actions. On Wednesday, economists expect a report to show prices for eggs, gasoline and other living costs for U.S. consumers were overall 2.9% higher in January than a year earlier.
In stock markets abroad, indexes rose across much of Europe and Asia.
Tokyo’s Nikkei 225 was virtually unchanged after Japan’s government reported a record current account surplus last year.
AP Business Writer Yuri Kageyama contributed.
Trader Peter Mancuso works on the floor of the New York Stock Exchange, Tuesday, Feb. 4, 2025. (AP Photo/Richard Drew)
Specialist Douglas Johnson works on the floor of the New York Stock Exchange, Tuesday, Feb. 4, 2025. (AP Photo/Richard Drew)
People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 10, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 10, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 10, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
Federal Reserve Chair Jerome Powellsaid Sunday the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony this summer about the Fed’s building renovations.
The move represents an unprecedented escalation in President Donald Trump’s battle with the Fed, an independent agency he's repeatedly attacked for not cutting its key interest rate as sharply as he prefers. The renewed fight will likely rattle financial markets Monday and could over time escalate borrowing costs for mortgages and other loans.
The subpoenas relate to Powell’s testimony before the Senate Banking Committee in June, the Fed chair said, regarding the Fed’s $2.5 billion renovation of two office buildings, a project Trump has criticized as excessive.
Here's the latest:
Stocks are falling on Wall Street after Federal Reserve Chair Jerome Powell said the Department of Justice had served the central bank with subpoenas and threatened it with a criminal indictment over his testimony about the Fed’s building renovations.
The S&P 500 fell 0.3% in early trading Monday. The Dow Jones Industrial Average lost 384 points, or 0.8%, and the Nasdaq composite fell 0.2%.
Powell characterized the threat of criminal charges as pretexts to undermine the Fed’s independence in setting interest rates, its main tool for fighting inflation. The threat is the latest escalation in President Trump’s feud with the Fed.
▶ Read more about the financial markets
She says she had “a very good conversation” with Trump on Monday morning about topics including “security with respect to our sovereignties.”
Last week, Sheinbaum had said she was seeking a conversation with Trump or U.S. Secretary of State Marco Rubio after the U.S. president made comments in an interview that he was ready to confront drug cartels on the ground and repeated the accusation that cartels were running Mexico.
Trump’s offers of using U.S. forces against Mexican cartels took on a new weight after the Trump administration deposed Venezuelan President Nicolás Maduro. Sheinbaum was expected to share more about their conversation later Monday.
A leader of the Canadian government is visiting China this week for the first time in nearly a decade, a bid to rebuild his country’s fractured relations with the world’s second-largest economy — and reduce Canada’s dependence on the United States, its neighbor and until recently one of its most supportive and unswerving allies.
The push by Prime Minster Mark Carney, who arrives Wednesday, is part of a major rethink as ties sour with the United States — the world’s No. 1 economy and long the largest trading partner for Canada by far.
Carney aims to double Canada’s non-U.S. exports in the next decade in the face of President Trump’s tariffs and the American leader’s musing that Canada could become “the 51st state.”
▶ Read more about relations between Canada and China
The comment by a Chinese Foreign Ministry spokesperson came in response to a question at a regular daily briefing. President Trump has said he would like to make a deal to acquire Greenland, a semiautonomous region of NATO ally Denmark, to prevent Russia or China from taking it over.
Tensions have grown between Washington, Denmark and Greenland this month as Trump and his administration push the issue and the White House considers a range of options, including military force, to acquire the vast Arctic island.
Danish Prime Minister Mette Frederiksen has warned that an American takeover of Greenland would mark the end of NATO.
▶ Read more about the U.S. and Greenland
Trump said Sunday that he is “inclined” to keep ExxonMobil out of Venezuela after its top executive was skeptical about oil investment efforts in the country after the toppling of former President Nicolás Maduro.
“I didn’t like Exxon’s response,” Trump said to reporters on Air Force One as he departed West Palm Beach, Florida. “They’re playing too cute.”
During a meeting Friday with oil executives, Trump tried to assuage the concerns of the companies and said they would be dealing directly with the U.S., rather than the Venezuelan government.
Some, however, weren’t convinced.
“If we look at the commercial constructs and frameworks in place today in Venezuela, today it’s uninvestable,” said Darren Woods, CEO of ExxonMobil, the largest U.S. oil company.
An ExxonMobil spokesperson did not immediately respond Sunday to a request for comment.
▶ Read more about Trump’s comments on ExxonMobil
Trump’s motorcade took a different route than usual to the airport as he was departing Florida on Sunday due to a “suspicious object,” according to the White House.
The object, which the White House did not describe, was discovered during security sweeps in advance of Trump’s arrival at Palm Beach International Airport.
“A further investigation was warranted and the presidential motorcade route was adjusted accordingly,” White House press secretary Karoline Leavitt said in a statement Sunday.
The president, when asked about the package by reporters, said, “I know nothing about it.”
Anthony Guglielmi, the spokesman for U.S. Secret Service, said the secondary route was taken just as a precaution and that “that is standard protocol.”
▶ Read more about the “suspicious object”
Trump said Iran wants to negotiate with Washington after his threat to strike the Islamic Republic over its bloody crackdown on protesters, a move coming as activists said Monday the death toll in the nationwide demonstrations rose to at least 544.
Iran had no direct reaction to Trump’s comments, which came after the foreign minister of Oman — long an interlocutor between Washington and Tehran — traveled to Iran this weekend. It also remains unclear just what Iran could promise, particularly as Trump has set strict demands over its nuclear program and its ballistic missile arsenal, which Tehran insists is crucial for its national defense.
Iranian Foreign Minister Abbas Araghchi, speaking to foreign diplomats in Tehran, insisted “the situation has come under total control” in fiery remarks that blamed Israel and the U.S. for the violence, without offering evidence.
▶ Read more about the possible negotiations and follow live updates
Fed Chair Powell said Sunday the DOJ has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony this summer about the Fed’s building renovations.
The move represents an unprecedented escalation in Trump’s battle with the Fed, an independent agency he has repeatedly attacked for not cutting its key interest rate as sharply as he prefers. The renewed fight will likely rattle financial markets Monday and could over time escalate borrowing costs for mortgages and other loans.
The subpoenas relate to Powell’s testimony before the Senate Banking Committee in June, the Fed chair said, regarding the Fed’s $2.5 billion renovation of two office buildings, a project that Trump has criticized as excessive.
Powell on Sunday cast off what has up to this point been a restrained approach to Trump’s criticisms and personal insults, which he has mostly ignored. Instead, Powell issued a video statement in which he bluntly characterized the threat of criminal charges as simple “pretexts” to undermine the Fed’s independence when it comes to setting interest rates.
▶ Read more about the subpoenas
President Donald Trump speaks to reporters while in flight on Air Force One to Joint Base Andrews, Md., Sunday, Jan. 11, 2026. (AP Photo/Julia Demaree Nikhinson)
President Donald Trump waves after arriving on Air Force One from Florida, Sunday, Jan. 11, 2026, at Joint Base Andrews, Md. (AP Photo/Julia Demaree Nikhinson)
